About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (May 26, 2020)

handle is hein.crs/govdawu0001 and id is 1 raw text is: Researh Sevice HEROES Act (H.R. 6800): Selected Consumer Loan Provisions May 26, 2020 The economic impact of the Coronavirus Disease 2019 (COVID-19) pandemic has been largely due to illnesses, quarantines, social distancing, local stay-at-home orders, and other business disruptions. Consequently, many Americans have lost income and face financial hardship. On May 15, 2020, the House passed the HEROES Act (H.R. 6800), a wide-ranging COVID-19 relief bill. This Insight discusses selected provisions in Division K, Title IV related to consumer loans and the financial services industry. Background Many consumers have had trouble paying their loan obligations, such as mortgages, student loans, auto loans, and credit cards. For this reason, loan forbearance has become a common form of relief offered by lenders to consumers (borrowers) during the COVID- 19 pandemic. Loan forbearance plans are agreements allowing borrowers to reduce or suspend payments for a short period of time, providing extended time for consumers to become current on their payments and repay the amounts owed. These plans do not forgive unpaid loan payments and tend to be appropriate for borrowers experiencing temporary hardship. Another COVID-19 relief bill, the Coronavirus Aid, Relief. and Economic Security Act (CARES Act; P[_. 116-136) enacted on March 27, 2020, establishes consumer rights to be granted forbearance for federally backed mortgages (Section 4022) and federal student loans (Section 3513). The CARES Act also protects the credit histories of consumers with forbearance agreements (Section 4021). It does not grant consumers these rights for other loans owed to private creditors, such as auto loans, credit cards, private student loans, and nonfederally backed mortgages. In these cases, financial institutions have discretion about when and how to offer loan forbearance or other relief options. Therefore, a consumer's ability to access these options and protect their credit history may vary. For more information, see CRS Report R46356, COVID 19: Consumer Loan Forbearance and Other Relief Options, coordinated by Cheryl R. Cooper. Congressional Research Service https://crsreports.congress.gov IN11405 CRS NStGHT Prepaimed for Mernbei-s and Committees o.i C- --q .. . . . . . . . ...-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most